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Monday, June 8, 2009

GBP/USD Trade Update for 080609

Price finished the secondary momentum seen in blue trend line within the red channel. Currently, the price is looking to challenge the main momentum of the GBP which is the red channel support. Entry for a bearish trade is too late now but may present itself with a pullback at the red channel support.

Current price significantly exceeding Target 1 can extend towards Target 2 and by then a lookout for bullish move as price forms a correction wave. The current price to reach the main USD territory support will require a chain of major events in the coming weeks or couple of months; unfavorable to the GBP to materialize. This is probably too much to be asking a USD in a recovering US economy.

In the past months when global economy was at its worst, the GBP was the last currency among AUD and EUR to react against USD biased price actions. Fundamental similarities between the British and American economies may once again allow the GBP to flow according to USD strength, more susceptible than both AUD and EUR.

Overall in the technical perspective, on day to day terms this week, the current consensus for GBP/USD is an even 2/4 USD bias which could tip over any way within the next few days.

Disclaimer: Trading in the FOREX market & other forms of investments involves risk. This information should not AT ALL be viewed as investment recommendations. The charts & information provided here are not meant for investment purposes & only serve as technical examples.